UBS AG, Australia Branch v Galileo Japan Funds Management Ltd; In the matter of Galileo Japan Funds Management Ltd (Responsible Entity)

The case before the court involved UBS AG, Australia Branch, as plaintiff, and Galileo Japan Funds Management Ltd, as defendant, with Galileo acting as the responsible entity for the Galileo Japan Trust. The primary dispute centered on the interpretation of a Facility Agreement and a claim in estoppel, with Galileo seeking discovery of certain documents to support its arguments regarding the surrounding circumstances and the knowledge attributed to UBS. The matter was heard in the Federal Court of Australia.

The legal issues before the court involved whether discovery should be ordered to aid in proving the surrounding circumstances claimed to be admissible in the proceedings. Specifically, Galileo sought discovery of documents to establish the knowledge UBS had at various times regarding the terms of certain loan agreements. The court had to determine if these documents were necessary to interpret the Facility Agreement and support Galileo's estoppel claim.

The court considered the arguments presented by both parties and concluded that limited discovery should be ordered. The court found that certain documents were relevant to the interpretation of the Facility Agreement and the estoppel claim. Consequently, the court made orders for formal discovery in accordance with revised categories 4, 5, and 6, as modified by the court. The court also noted that Galileo would agree to provide discovery in accordance with category 3 notified by UBS, thus no formal order was needed for that matter. The costs of the discovery application were to be the costs of the joint hearing fixed to commence on 14 May 2012.

The court's orders included specific instructions for UBS to prepare and serve a verified List of Documents by 27 April 2012, covering communications and documents related to the negotiations and entry into the Facility Agreement, as well as communications regarding the terms of credit agreements. The inspection of discovered documents was scheduled between 30 April 2012 and 2 May 2012. The interlocutory application filed by Galileo was otherwise dismissed, and the costs of the application were fixed as costs of the hearing on 14 May 2012.